Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
The cannabis market is becoming increasingly popular, and there are different ways that you can get exposure to it. One such a way is through IG’s Cannabis Index, which comprises of 20 constituent marijuana stocks. Learn more about the index and find out how to trade it.
The Cannabis Index is a stock index that captures the gross total return performance of the 20 largest publicly listed US and Canadian companies with direct revenue exposure to the cannabis industry. The index is calculated and managed by BITA GmbH.
There is more than one way to get access to the cannabis market – learn about them here
What stocks are in the Cannabis Index?
| Currency | |
| Aleafia Health Inc | CAD |
| Aphria Inc | CAD |
| Aurora Cannabis Inc | CAD |
| Auxly Cannabis Group Inc | CAD |
| CannTrust Holdings Inc | CAD |
| Canopy Growth Corporation | CAD |
| Cronos Group Inc | CAD |
| Emerald Health Therapeutics Inc | CAD |
| The Green Organic Dutchman Holdings Limited | CAD |
| HEXO Corporation | CAD |
| Khiron Life Sciences Corporation | CAD |
| MediPharm Labs Corporation | CAD |
| OrganiGram Holdings Inc | CAD |
| PharmaCielo Limited | CAD |
| Zenabis Global Inc | CAD |
| Corbus Pharmaceuticals PLC - ADR | USD |
| GW Phramaceuticals PLC - ADR | USD |
| Innovative Industrial Properties Inc | USD |
| Tilray Inc | USD |
| Zynerba Pharmaceuticals Inc | USD |
This list was last updated on 20 November 2019.
Everything you need to know about the best cannabis stocks in the world
You can trade the Cannabis Index by taking a position on the performance of the index via derivatives such as CFDs or spread bets. If you trade derivatives, you won’t take ownership of any underlying assets, so you can speculate on price movements in either direction. In other words, you can ‘buy’ if you think the index price will go up, or ‘sell’ if you think it will go down.
Many people choose to trade using leverage because it enables you to open a position with a small deposit called margin. You’ll still get exposure to the full value of the position, and your profit and loss will be based on the total position size. However, this means that losses as well as profits could outweigh your initial margin amount. There are often various tax benefits, and you can hedge your positions.1
To trade the Cannabis Index price, follow these steps:
Ready to trade the Cannabis Index? Open a live trading account.
Minimum size 0.50
Contract size USD 1
One Pip means 1 Index Point
Value of one Pip USD 1 (GBP 0.80)
Margin 10%
Minimum stop distance 8
Minimum guaranteed stop distance 5.0%
Your aggregate position in this market will be margined in the following tiers:
| Tier | Position size | Margin |
| 1 | 0 - 172 Contracts - USD | 10% |
| 2 | 172 - 516 Contracts - USD | 25% |
| 3 | 516 - 1376 Contracts - USD | 50% |
| 4 | 1376 + Contracts - USD | 75% |
If your aggregate position is larger than Tier 1, your margin requirement will not be reduced by non-guaranteed stops.
Please note: we have tried to ensure that the information here is as accurate as possible, but it is intended for guidance only and any errors will not be binding on us.
Gross Total Return performance of the 20 largest publicly listed US and Canadian companies with direct revenue exposure to the cannabis industry.
The index is calculated and managed by BITA GmbH.
Other positions taken by clients trading this market
Use this to see how IG client accounts with positions on this market are trading other markets. Data is calculated to the nearest 1%, and updated automatically every 15 minutes.
This is calculated to the nearest 1%.
Discover opportunity in-platform
Discover opportunity in-app
Open a free, no-risk demo account to stay on top of index movement and important events.
Real-time charts
Analyse index price action on our fast, reliable HTML5 charts
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Identify the right time to trade with free technical signals, on indices and more
Three types of alert
Be notified when a market changes an amount, hits a level or meets your technical conditions
Reuters news feed
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Real-time charts
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Reuters news feed
Could I profit from trading cannabis markets?
The short answer is yes, you could, but there is also the potential for losses. There are two ways to trade the cannabis markets with IG and possibly profit, namely CFDs and spread bets. Both are derivative products, which enable you to speculate on price movements without taking ownership of any underlying assets. You can go long or short on the following cannabis markets with IG:
In which countries is marijuana legal?
Marijuana is legal in several countries, depending on its use. Medical marijuana is legal in Argentina, Australia, Canada, Chile, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Finland, Germany, Greece, Israel, Italy, Jamaica, Luxembourg, Macedonia, Malta, Mexico, the Netherlands, Norway, Peru, Poland, Portugal, San Marino, South Africa, South Korea, Sri Lanka, Switzerland, the UK, Uruguay and Zimbabwe. A couple of states in the US also allow marijuana for medical purposes, but the country as a whole has not legalised it.
Some of the countries that allow marijuana for recreational purposes include Canada, Uruguay, Georgia and South Africa, while its use is also permitted in certain US states.
What should you bear in mind before trading cannabis?
Before trading cannabis, bear in mind the risks involved in trading. With cannabis, this includes regular legislation changes as well as the volatility of the stocks. Make sure you have the necessary risk management measures in place before opening your cannabis position.
FTSE 100 from 4 points and more 24-hour markets than anywhere else. Find out more about why you should trade indices with IG.
Discover why so many clients choose us, and what makes us the world's No.1 provider of spread betting and CFDs.1
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1 Spread bets and CFDs are each taxed differently in the UK. It’s very important to note that tax laws regarding spread betting and CFD trading differ from country to country, they depend on your personal circumstances, and they are subject to change. For the majority of UK residents, spread bets are tax-free. You won’t pay stamp duty and, for most, you won’t pay capital gains tax on your profits. CFDs are free from stamp duty, but you may pay capital gains on your profits. We do not give tax advice – the above is to be used as a guideline only.
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